Correlation Between Akanda Corp and Global E
Can any of the company-specific risk be diversified away by investing in both Akanda Corp and Global E at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Akanda Corp and Global E into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akanda Corp and Global E Online, you can compare the effects of market volatilities on Akanda Corp and Global E and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Akanda Corp with a short position of Global E. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akanda Corp and Global E.
Diversification Opportunities for Akanda Corp and Global E
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Akanda and Global is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Akanda Corp and Global E Online in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global E Online and Akanda Corp is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Akanda Corp are associated (or correlated) with Global E. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global E Online has no effect on the direction of Akanda Corp i.e., Akanda Corp and Global E go up and down completely randomly.
Pair Corralation between Akanda Corp and Global E
Given the investment horizon of 90 days Akanda Corp is expected to generate 1.44 times less return on investment than Global E. In addition to that, Akanda Corp is 1.59 times more volatile than Global E Online. It trades about 0.21 of its total potential returns per unit of risk. Global E Online is currently generating about 0.47 per unit of volatility. If you would invest 3,844 in Global E Online on September 1, 2024 and sell it today you would earn a total of 1,384 from holding Global E Online or generate 36.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akanda Corp vs. Global E Online
Performance |
| Timeline |
| Akanda Corp |
| Global E Online |
Akanda Corp and Global E Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akanda Corp and Global E
The main advantage of trading using opposite Akanda Corp and Global E positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akanda Corp position performs unexpectedly, Global E can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Global E will offset losses from the drop in Global E's long position.| Akanda Corp vs. Tff Pharmaceuticals | Akanda Corp vs. Eliem Therapeutics | Akanda Corp vs. Inhibrx | Akanda Corp vs. Enliven Therapeutics |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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